Guidelines for a just transition towards environmentally sustainable economies and societies for all 1

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1 INTERNATIONAL LABOUR ORGANIZATION Tripartite Meeting of Experts on Sustainable Development, Decent Work and Green Jobs MESDDW/2015 Geneva 5 9 October 2015 Guidelines for a just transition towards environmentally sustainable economies and societies for all 1 1 The content of this document reflects the draft guidelines as agreed by the meeting with a number of editing suggestions by the Secretariat to clarify attribution of responsibility to governments or social partners and to improve readability. MESDDW-POLICY GUIDELINES-En.docx 1

2 I. Policy coherence and institutional arrangements for a just transition for all 2 1. Governments should: (a) provide stable policy signals based on social dialogue and a regulatory framework to enable sustainable enterprise development and decent work for all, social inclusion and the eradication of poverty in the transition to sustainable economies; (b) consider and promote those international labour standards most relevant to the just transition framework towards environmentally sustainable economies and societies for all (as listed in the appendix of the ILC 2013 conclusions), with a view to their ratification and full implementation; (c) integrate provisions for a just transition into national plans and policies for the achievement of the Sustainable Development Goals and national environmental and climate change action plans; (d) integrate provisions for a just transition into the agendas of line ministries, rather than assigning them to only one ministry; (e) promote close collaboration between relevant national ministries, including ministries of economic planning and finance, with a view to establishing policies and programmes that can adapt to changes in the fiscal and political landscape; (f) establish and strengthen institutional and technical capacities of subnational authorities at the regional and local levels to guide the transition, and to address the necessary changes in regional economies; (g) provide opportunities for the participation of social partners at all possible levels and stages of the policy process through social dialogue and foster consultations with relevant stakeholders; (h) establish or strengthen availability of and access to basic labour market data, where needed, and carry out ex ante assessments of the employment and socio-economic impacts of environmental policies to inform policy choices; (i) (j) include research and impact evaluations in environmentally sustainable economic and social policies to ensure that optimal balances of policy measures are achieved; encourage and actively engage in collaborative efforts among governments, employers and workers organizations, with the support of international organizations, to effectively incorporate enabling policies for a transition towards environmental sustainability. 2 In the remainder of the document the term transition means just transition to environmentally sustainable economies and societies. MESDDW-POLICY GUIDELINES-En.docx 2

3 2. Governments and social partners should: (a) consider concluding agreements for the implementation of economic, social and environmental policies, including with a view to achieving the Sustainable Development Goals; (b) mobilize funding, support and assistance, facilitated where appropriate by international organizations, including through Decent Work Country Programmes; (c) share knowledge and best practices regarding environmentally sustainable macroeconomic and sectoral policies; (d) discuss and analyse the outcomes of the employment and socio-economic assessments as described in 1(g) to inform policy choices; (e) promote cooperation: (i) at the international level, to assist one another in giving effect to the Sustainable Development Goals through assistance and capacity building; (ii) through initiatives, including but not limited to South South Cooperation, particularly with regard to low-carbon climate-resilient agriculture, renewable energy, restoration of natural resources and reforestation activities; (iii) at the national level, where social partners cooperate with the authorities in developing, implementing and monitoring policies in accordance with national practices; (iv) at the industry level, where social partners can have a key role through all forms of social dialogue, including collective bargaining, in ensuring decent work and in forecasting skills needs and employment challenges, and in designing adequate and continuous training, among others; (v) at the local level, where local authorities, employers, trade unions and research and training institutions need to cooperate to effectively integrate measures for a just transition into local sustainable economic development; (vi) at the enterprise level, where social partners can work together to limit adverse environmental impact and support skills development for workers. II. Social dialogue and tripartism policies 3. Governments should: (a) actively promote and engage in social dialogue, at all stages from policy design to implementation and evaluation and at all levels from national to enterprise level in line with applicable international labour standards most relevant to the just transition framework, to forge consensus on pathways towards environmental sustainability with decent work; (b) promote the creation, development and formalization of dialogue mechanisms and structures at all levels to discuss the best means to implement national social, economic and environmental goals. MESDDW-POLICY GUIDELINES-En.docx 3

4 4. Social partners should: (a) raise awareness and understanding and provide guidance among their members about developments relevant to the just transition framework, sustainable development, decent work and green jobs for women and men; (b) play an active role in the formulation, implementation and monitoring of national sustainable development policies, articulating the pivotal role of employers and workers organizations in bringing about social, economic and environmental sustainability with decent work and social inclusion; (c) promote the active participation of their members in social dialogue at the enterprise, sectoral and national levels to assess opportunities and resolve challenges posed by the transition; (d) promote the inclusion of specific environmental provisions through collective bargaining and collective agreements at all levels, where appropriate, as a concrete way of facilitating cooperation between employers and workers organizations and encouraging enterprises to comply with environmental regulations, including but not limited to emission reductions, to meet enterprise objectives regarding sustainability and develop the training of workers and managers. III. Macroeconomic and growth policies 5. Governments, in consultation with social partners, should: (a) integrate sustainable development and a just transition into macroeconomic and growth policies: (i) undertake collaborative efforts between governments, international organizations, employers and workers organizations to incorporate the just transition framework into macroeconomic policies; (ii) adopt macroeconomic and growth policies that promote sustainable production and consumption patterns, create an enabling environment for sustainable enterprises and place full and productive employment and decent work for all at the centre of economic and social policies; (iii) develop and realign incentive schemes to stimulate enterprise innovation towards sustainable development; (b) align economic growth with social and environmental objectives: (i) incorporate sustainable macroeconomic policies into medium- and longer term national development and action plans; (ii) consider adopting action plans with stable targets on social and environmental challenges, to signal long-term commitments; (iii) articulate long-term financing needs and establish sustainable funding mechanisms for the implementation of the just transition framework; 4 MESDDW-POLICY GUIDELINES-En.docx

5 (c) adopt appropriate regulations and instruments: (i) explore and identify an appropriate combination of taxes, subsidies, incentives, guaranteed prices, and loans to encourage a transition towards economically sustainable activities; (ii) consider implementing environmental tax reform that could also help financing the compensation of those disproportionately affected by the transition towards economically sustainable activities; (iii) provide for effective monitoring and evaluation of the uptake and impact of the package of measures to enhance alignment between the intent and the rules of the instruments; (iv) improve policy effectiveness, where necessary, by using targeted fiscal policy measures, market-based instruments, public procurement and investment policies; (v) facilitate compliance with regulations through information and guidance adapted to different target groups, such as MSMEs; monitor compliance with regulations and, where applicable, enforce quotas; (d) invest public funds in greening the economy: (i) use public investments to develop infrastructure with the lowest possible adverse environmental impact, to rehabilitate and conserve natural resources and to prioritize resilience in order to reduce the risk of displacement of people and enterprises; (ii) direct fiscal revenue towards social protection and active labour market policies to foster job creation and help workers to adjust to environmental sustainability policies; (iii) use public procurement to incentivize a shift to environmentally sustainable goods and services and promote social inclusion by ensuring that enterprises, in particular MSMEs and disadvantaged groups, are able to apply for public purchases; (e) develop trade and investment policies: (i) use trade and investment policies to reach social, economic and environmental sustainability, to facilitate access to environmentally friendly technology, to nurture domestic green industries in their infancy, and to encourage and facilitate green innovation and jobs. IV. Industrial and sectoral policies 6. Governments, in consultation with social partners, should: (a) set goals for the continuous improvement in the social, economic and environmental sustainability of the sectors and design sectoral policies and programmes in line with the specific conditions of each sector and the types and sizes of enterprises operating in it; MESDDW-POLICY GUIDELINES-En.docx 5

6 (b) foster effective social dialogue at the sectoral level to promote consensus building and social acceptance for the successful implementation of social, economic and environmental policies including, but not limited to, climate change; (c) also in consultation with other stakeholders establish incentives, mandates and, where necessary, regulations to stimulate demand, investment and development of markets for goods and services in sectors and subsectors that are relevant for the greening of economies; (d) use policy instruments for market creation and incentives in a stable, predictable and transparent manner, give clear signals to investors, minimize market and price distortions, encourage innovation and ensure effective use of public resources; (e) pay special attention to the industries, regions, communities and workers whose livelihoods might experience the hardest impacts of the transition; (f) undertake steps and design measures to facilitate formalization and promote decent work, particularly in, but not limited to, the waste management and recycling sectors; (g) formulate accompanying policies through social protection, including unemployment insurance and benefits, skills training and upgrading, workforce redeployment and other appropriate measures to support enterprises and workers in sectors negatively impacted by the transition to sustainable development; (h) consider ratifying or otherwise implementing relevant international labour standards (as referenced in the appendix of the ILC conclusions of 2013) being mindful of the needs in specific sectors. V. Enterprise policies 7. Governments in consultation with social partners should: (a) provide an enabling environment for sustainable enterprises based on assessment and social dialogue in line with the 2007 ILC conclusions and the 17 conditions defined in it, as referenced in the 2013 ILC conclusions (Appendix), for businesses to enhance productivity, create jobs and promote decent work while complying with social, economic and environmental regulations; (b) consider that fiscal and tax reforms should have due regard to the best means to enhance compliance with environmental taxes and levies; (c) enhance the resilience of businesses, in particular MSMEs, to avoid disruption of economic activity and loss of assets, jobs and incomes; (d) develop national policies and plans for mitigation, adaptation to climate change and disaster preparedness closely with business associations, workers organizations and other stakeholders to strengthen resilience to the impacts of climate change and promote disaster preparedness information and insurance; (e) pay special attention to assisting MSMEs, including cooperatives and entrepreneurs, in making the transition; (f) provide financial incentives (grants, low-interest loans and tax incentives) for businesses adopting environmentally sound practices, including, but not limited to, 6 MESDDW-POLICY GUIDELINES-En.docx

7 energy-saving and efficiency measures and measures targeted at clean sources of energy, in line with economic and social sustainability; (g) where appropriate, promote sustainable products and services of enterprises in public procurement local content requirement consistent with WTO and other international agreements, and enable access for MSMEs and cooperatives to become participants in the procurement process; (h) establish targeted programmes in sectors where a significant proportion of enterprises and workers are informal with a view to promote formalization and awareness of social, economic and environmental policies; in this context, the use of the cooperative model, among others, can be an effective tool for formalization. 8. Governments and social partners should: (a) provide targeted business information and advice on green business practices, eco-innovation and regulatory systems and on how to achieve compliance, with particular attention to MSMEs and in easily accessible formats such as user-friendly toolkits; (b) for existing enterprises, provide technical support, advice and services to establish environmental management and compliance systems; and, for green technology startups, conduct awareness and education campaigns to foster a culture of eco-entrepreneurship and provide technical support, advice and services; (c) provide assistance to management and workers in transitioning business operations away from high-carbon, high-polluting and resource-intensive operations; such support should include technology transfer mechanisms on favourable terms, as mutually agreed, as well as support for innovation and sharing of good practices to facilitate the just transition to environmentally sustainable economies. 9. In alignment with the other policies for a just transition, governments and social partners should: (a) provide training opportunities for up- and reskilling (including for workers affected by the transition) and initial learning in green business practices and environmentally friendly technology and innovation; (b) consider providing financial and technical support to enterprises undertaking research and development in green technologies, and support cluster development and incubation; (c) consider support measures for enterprises and workers seriously affected by transitioning to environmentally sound economies and societies for all; (d) promote institutionalized workplace cooperation by fostering a culture of dialogue, knowledge sharing and mutual advice aimed at improving resource and energy efficiency, reducing waste, and applying safe and clean technologies and working methods that promote productive employment and decent work; (e) promote the adoption by enterprises of long-term environmentally sustainable policies included, but not limited to, low-carbon policies, and engage workers and their representatives and governments, where appropriate, on the means to achieve that goal while creating and protecting employment. MESDDW-POLICY GUIDELINES-En.docx 7

8 VI. Skill development policies 10. Governments, in consultation with social partners, should: (a) support the transitioning to more environmentally sustainable economies by reviewing skills development policies to ensure they support responsive training, capacity building and curricula; (b) coordinate skills development policies and technical and vocational education and training systems with environmental policies and the greening of the economy; and consider concluding bipartite or tripartite agreements on skills development; (c) match supply and demand for skills through skills needs assessments, labour market information and core skills development, in collaboration with industry and training institutions; (d) give high policy priority and allocate resources to the identification and anticipation of evolving skills needs and the review and alignment of occupational skills profiles and training programmes; (e) encourage acquisition of both generic skills and skills in science, technology, engineering and mathematics and incorporation in curricula for basic training and lifelong learning. 11. Governments and social partners should: (a) engage in social dialogue for responsive and collaborative labour market institutions and training systems, and coordinate stakeholder needs at all stages of education and skills policy development and implementation; (b) promote equal access to opportunities for skills acquisition and recognition for all, in particular for young people, women, workers who need to be redeployed, including across borders, and for owners and workers of MSMEs by offering specific training services, ensuring suitable timing and duration and promote supportive policies to enable individuals to balance their work, family and lifelong learning interests; (c) promote work-related training and practical experience as part of the training process in order to increase the employability of jobseekers; (d) formulate a holistic skills development policy to promote skills for green jobs that are coherent with environmental policies, including means for appropriate recognition through certification of skills; (e) foster peer learning among enterprises and workers, as well as education and training in green entrepreneurship to spread sustainable practices and the use of green technologies; (f) assist businesses, particularly MSMEs, including cooperatives, in their engagement with governments and training providers with regard to management and skills upgrading of their current workforce, anticipation of future occupational profiles and skills needs, and workers acquisition of portable and employable skills. 8 MESDDW-POLICY GUIDELINES-En.docx

9 VII. Occupational safety and health policies 12. Governments, in consultation with social partners, should: (a) conduct assessments of increased or new OSH risks resulting from climate change, resource scarcity or other risks related to human health and the environment, and identify adequate prevention and protection measures to seek to ensure occupational safety and health; (b) where necessary, improve, adapt or develop and create awareness of OSH standards for technologies, work processes and new materials related to the transition; (c) adopt and implement applicable OSH standards, and provide adequate capacity to labour inspectorates to monitor compliance, in line with Appendix 1 of the 2013 ILC conclusions; (d) work towards greater OSH policy coherence and cooperation among occupational health and environmental agencies or other competent institutions with regard to regulation and enforcement; (e) formulate, implement and periodically review national policies concerning the protection of workers, the public and the environment against the risk of major industrial accidents, stressing the need for a coherent approach; (f) promote the use of appropriate prevention, protection and safety processes and strengthen government capacity to enforce laws at national and subnational level in relation to situations which pose an imminent threat of major accidents or risks; (g) incentivize companies and support technical assistance to conduct research to better understand the range of OSH risks across the life cycle of products, new technologies and jobs, and use this knowledge to improve prevention and safety in the workplace; (h) establish, promote or provide for the setting up of joint workers and employers OSH committees or similar structures in the workplace, as appropriate, and consider, where applicable, the introduction of issues related to the environment; (i) (j) regulate and incentivize companies to reduce, minimize, and, where possible, eliminate hazardous materials across the supply chain of products and production processes; assess and define appropriate legislation to ensure that companies take appropriate steps to mitigate adverse impacts on health and safety and, where applicable, the wider environment, throughout the life cycle of products and processes. 13. Governments and the social partners should: (a) include OSH aspects, where appropriate, in certification programmes for sustainability; (b) promote adequate OSH training in green jobs for workers (vocational training schemes and programmes of continuous training in occupational safety and health) and for employers, members of OSH committees and labour inspectors; (c) address the OSH impacts of informality, and facilitate the transition towards the formal economy, in activities related to the greening of the economy, such as MESDDW-POLICY GUIDELINES-En.docx 9

10 materials recovery and recycling, through training, capacity building, certification and, if necessary, legislation. VIII. Social protection policies 14. Governments in consultation with social partners should: (a) promote and establish adequate social protection systems providing healthcare, income security and social services, in line with international labour standards (Appendix 1), also with a view to increasing resilience and safeguarding populations against the impacts of economic and environmental vulnerabilities and shocks and contributing to the goals of productive employment, decent work, social inclusion and the eradication of poverty in the transition; (b) integrate social protection into policy measures and responses to environmental impacts and the challenges of the transition for those likely to be negatively affected, in particular workers largely dependent on natural resources or facing major structural changes. In this context, also consider, among others, the use of measures to protect retirement security, in line with national legislation; (c) promote innovative social protection mechanisms that contribute to offsetting the impacts of climate change and the challenges of the transition on livelihoods, incomes and jobs, along with social security guarantees provided for in the standards listed in Appendix 1; (d) where applicable, make use of employment guarantee schemes and public works that also enhance resilience to climate change, rehabilitate natural resources and create new productive and sustainable assets; (e) integrate adequate social protection measures, as appropriate, into national responses to climate change, as an essential part of climate change adaptation and mitigation policies; (f) facilitate bilateral discussions on the portability of social protection entitlements in situations of cross-border displacement, including those due to the transition to environmentally sustainable economies and climate change impacts; (g) consider the role and use of public insurance in accordance with legislation for those affected by climate-related and other environmental disasters, in particular for farmers and MSMEs; (h) foster tripartite mechanisms to identify and understand challenges posed by climate change and formulate adequate, predictable and innovative social protection measures that protect, where appropriate, existing benefits and take into account emerging social needs; (i) when designing and reviewing social protection in the context of the adoption of clean energy measures, consider compensating low income households which spend a significantly higher proportion of their income on energy and on goods and services that have large amounts of energy embedded in them. 10 MESDDW-POLICY GUIDELINES-En.docx

11 IX. Active labour market policies 15. Governments in consultation with social partners should: (a) encourage sound labour market policies that help enterprises and workers in the anticipation of changing labour market demands in the context of the transition to environmentally sustainable economies by facilitating access to jobs, strengthening employability and training; (b) give particular attention to unemployed workers and workers at risk of unemployment in communities and industries affected by climate change, resource degradation or structural change including those in the informal economy; (c) promote an efficient and effective delivery of employment services that respond to the needs of enterprises and workers in the transition to environmentally sustainable economies and extends outreach to those outside of the formal labour market; (d) develop and support, through public and private employment service providers, tailormade courses directly linked to specific occupations and entrepreneurship opportunities in the green economy; (e) adapt and strengthen public employment services to further develop their role as transition agents. They should provide information, guidance, matching services and training. These services can be improved by expanding innovative ways of reaching out to jobseekers; (f) consider supporting public works and employment programmes, including initiatives linking poverty eradication and ecosystem protection, as well as those for workers affected by the transitioning to environmentally sustainable economies, including climate change, who have been laid off due to structural or technological change; (g) consider introducing active employment policies including, among others, welltargeted subsidies that allow workers to access education and acquire skills that improve their employability through work experience and on-the-job training. MESDDW-POLICY GUIDELINES-En.docx 11

12 INTERNATIONAL LABOUR ORGANIZATION Tripartite Meeting of Experts on Sustainable Development, Decent Work and Green Jobs MESDDW/2015 Geneva 5 9 October 2015 Room Document II Possible recommendations to give practical effect to the policy guidelines For the Organization as a whole Bring the policy guidelines to the attention of key ministries and other relevant institutions and ask them to consider making use of the guidelines in working towards a just transition, as well as in working towards achieving the Sustainable Development Goals (SDGs). Request that the Governing Body take note of the guidelines and ask the Director- General to bring them to the attention of international organizations and forums, such as the UNFCCC, UNEA, the high-level political forum overseeing the follow-up and review of Agenda 2030 and the interagency expert group on SDG indicators. Consider a review of lessons learned with the application of the policy guidelines for discussion in the Governing Body in For the constituents Take the policy guidelines into consideration when designing and implementing national strategies for sustainable development, including those related to the SDGs and climate change in order to maximize economic and employment benefits of policies in a just transition towards low-carbon, environmentally sustainable economies and societies for all. Actively promote tripartite consultations in member States on the relevance and practical application of the policy guidelines at national, sector and local level, including in the context of Decent Work Country Programmes. Consider including the content of the guidelines in relevant capacity-building programmes. Employers and workers organizations to disseminate the guidelines to raise awareness. MESDDW-ROOM DOCUMENT II-En.docx 1

13 For the Office Publish a user-friendly and accessible set of the guidelines and disseminate them in the widest possible way, including among UN partners. Provide dedicated technical support to the application of the policy guidelines at national, sector and/or local level upon request. Sustain knowledge generation and research on policy areas of the guidelines to expand the evidence base, to keep it current and to inform innovative measures in the transition. Incorporate monitoring, reporting and exchange on the use and effectiveness of the guidelines in the ILO s knowledge management. Design and promote capacity-building programmes based on the structure and content of the policy guidelines recognizing the necessary involvement of the ILO ITC in Turin. Refer to the guidelines, the 2013 conclusions and the Global Jobs Pact when providing advice on policy areas covered by the guidelines. Use the 2013 ILC conclusions and the guidelines as an organizing framework for the ILO Director-General s Green Initiative. 2 MESDDW-ROOM DOCUMENT II-En.docx

14 INTERNATIONAL LABOUR ORGANIZATION Tripartite Meeting of Experts on Sustainable Development, Decent Work and Green Jobs MESDDW/2015 Geneva 5 9 October 2015 Room Document III Suggestions for accompanying, introductory text or Preamble to the ILO policy guidelines for a just transition MESDDW-ROOM DOCUMENT III-En.docx 1

15 Background and scope At its 102nd Session (2013), the International Labour Conference adopted a resolution and a set of conclusions, hereafter referred to as the conclusions, concerning sustainable development, decent work and green jobs putting forward a policy framework for a just transition. At its 321st Session (June 2014), the Governing Body of the ILO endorsed the proposal to hold a tripartite meeting of experts in 2015 as a follow-up to the Conference conclusions. Following the decision of the Governing Body, the Office convened the Tripartite Meeting of Experts (footnote with list of participants) from 5 9 October 2015 to: review, amend and adopt draft guidelines based on a compilation and thorough review by the Office of experiences from country policies and sectoral strategies towards environmental sustainability, the greening of enterprises, social inclusion and the promotion of green jobs; distil lessons and good practices in respect of policy formulation in each of the nine policy areas identified in the just transition framework, through tripartite dialogue; recommend ways to give practical effect to the guidelines in terms of their dissemination and practical application at the country level by constituents and adopt policy guidelines on a just transition towards environmentally sustainable economies and societies for all. The following guidelines as agreed by the Experts are meant to provide non-binding practical orientation to Governments and social partners with some specific options on how to formulate, implement and monitor the policy framework, in accordance with national circumstances and priorities. The guidelines are anchored in the vision, opportunities and challenges, guiding principles and the type of policies to implement, as contained in the conclusions. The guidelines also incorporate the International Labour Standards listed in the appendix to the conclusions across policy areas. The following text reproduces verbatim parts of the text of the conclusions which provide the basis for the present policy guidelines. These parts include the vision, the opportunities and challenges identified, as well as guiding principles. 1 It also reproduces the introduction to the key policy areas and institutional arrangements framework 2 and the paragraph concerning rights. 3 The latter includes a reference to the appendix of the conclusions with some international labour standards and resolutions that may be relevant to the just transition framework. This appendix is reproduced as Annex 1 of the present text ILC conclusions, paras ILC conclusions, para. 14(1), (2) and (3) ILC conclusions, para. 14(m). 2 MESDDW-ROOM DOCUMENT III-En.docx

16 Our vision 1. The four pillars of the Decent Work Agenda social dialogue, social protection, rights at work and employment are indispensable building blocks of sustainable development and must be at the centre of policies for strong, sustainable and inclusive growth and development. 2. Sustainable development means that the needs of the present generation should be met without compromising the ability of future generations to meet their own needs. Sustainable development has three dimensions economic, social and environmental which are interrelated, of equal importance and must be addressed together. 3. Sharing a common global purpose, there are different approaches, models and tools available to each country, in accordance with its national circumstances and priorities to achieve sustainable development in its three dimensions, which is our overarching goal. 4. A just transition for all towards an environmentally sustainable economy, as described in this document, needs to be well managed and contribute to the goals of decent work for all, social inclusion and the eradication of poverty. 5. Decent work, poverty eradication and environmental sustainability are three of the defining challenges of the twenty-first century. Economies must be productive to meet the needs of the world s growing population. Societies must be inclusive, providing opportunities for decent work for all, reducing inequalities and effectively eliminating poverty. 6. When referring to the greening of economies, enterprises and jobs, we consider it in the context of sustainable development and poverty eradication. This is one of the important tools for achieving sustainable development and could provide options for policy-making. In this context, we welcome the document The Future We Want adopted by the United Nations Conference on Sustainable Development (Rio +20). 7. The greening of economies presents many opportunities to achieve social objectives: it has the potential to be a new engine of growth, both in advanced and developing economies, and a net generator of decent, green jobs that can contribute significantly to poverty eradication and social inclusion. The greening of economies will enhance our ability to manage natural resources sustainably, increase energy efficiency and reduce waste, while addressing inequalities and enhancing resilience. The greening of jobs and the promotion of green jobs, both in traditional and emerging sectors, will foster a competitive, lowcarbon, environmentally sustainable economy and patterns of sustainable consumption and production, and contribute to the fight against climate change. 8. Managed well, transitions to environmentally and socially sustainable economies can become a strong driver of job creation, job upgrading, social justice and poverty eradication. Greening all enterprises and jobs by introducing more energy and resource efficient practices, avoiding pollution and managing natural resources sustainably leads to innovation, enhances resilience and generates savings which drive new investment and employment. 9. Sustainable development is only possible with the active engagement of the world of work. Governments, employers and workers are not passive bystanders, but rather agents of change, who are able to develop new ways of working that safeguard the environment for present and future generations, eradicate poverty and promote social justice by fostering sustainable enterprises and creating decent work for all. MESDDW-ROOM DOCUMENT III-En.docx 3

17 10. The path to environmentally sustainable development involves a wide range of efforts and activities from the ILO and member States, who have widely varying capabilities and ability to act in accordance with the reality of each State. In that context, cooperation, information sharing and joint action within the mandate of the ILO will be valuable. 11. We recall the principle of common but differentiated responsibilities as set out in the Rio Declaration on Environment and Development (1992). Opportunities and challenges 12. In the transition to environmentally sustainable economies and societies, the world of work can benefit from some major opportunities, for example: (a) net gains in total employment from realizing the potential to create significant numbers of additional decent jobs through investments into environmentally sustainable production and consumption and management of natural resources; (b) improvements in job quality and incomes on a large scale from more productive processes, as well as greener products and services in sectors like agriculture, construction, recycling and tourism; (c) social inclusion through improved access to affordable, environmentally sustainable energy and payments for environmental services, for instance, which are of particular relevance to women and residents in rural areas; and faces some major challenges, for example: (d) economic restructuring, resulting in the displacement of workers and possible job losses and job creation attributable to the greening of enterprises and workplaces; (e) the need for enterprises, workplaces and communities to adapt to climate change to avoid loss of assets and livelihoods and involuntary migration; and (f) adverse effects on the incomes of poor households from higher energy and commodity prices. Given the scale and urgency of these environmental and employment challenges, it is clear that the world will have neither the resources nor the time to tackle them separately or consecutively. Tackling them jointly is not an option, but a necessity. Guiding principles 13. The following principles should guide the transition to environmentally sustainable economies and societies: (a) Strong social consensus on the goal and pathways to sustainability is fundamental. Social dialogue has to be an integral part of the institutional framework for policymaking and implementation at all levels. Adequate, informed and ongoing consultation should take place with all relevant stakeholders. (b) Policies must respect, promote and realize fundamental principles and rights at work. 4 MESDDW-ROOM DOCUMENT III-En.docx

18 (c) Policies and programmes need to take into account the strong gender dimension of many environmental challenges and opportunities. Specific gender policies should be considered in order to promote equitable outcomes. (d) Coherent policies across the economic, environmental, social, education/training and labour portfolios need to provide an enabling environment for enterprises, workers, investors and consumers to embrace and drive the transition towards environmentally sustainable and inclusive economies and societies. (e) These coherent policies also need to provide a just transition framework for all to promote the creation of more decent jobs, including as appropriate: anticipating impacts on employment, adequate and sustainable social protection for job losses and displacement, skills development and social dialogue, including the effective exercise of the right to organize and bargain collectively. (f) There is no one size fits all. Policies and programmes need to be designed in line with the specific conditions of countries, including their stage of development, economic sectors and types and sizes of enterprises. (g) In implementing sustainable development strategies, it is important to foster international cooperation among countries. In this context, we recall the outcome document of the United Nations Conference on Sustainable Development (Rio +20), including section VI on means of implementation. Key policy areas and institutional arrangements for a just transition for all 14. The following elements constitute a basic framework to address the challenges of a just transition for all: (1) The greening of economies in the context of sustainable development and poverty eradication will require a country-specific mix of macroeconomic, industrial, sectoral and labour policies that create an enabling environment for sustainable enterprises to prosper and create decent work opportunities by mobilizing and directing public and private investment towards environmentally sustainable activities. The aim should be to generate decent jobs all along the supply chain, in dynamic, high value added sectors which stimulate the upgrading of jobs and skills as well as job creation and improved productivity in more labour-intensive industries that offer employment opportunities on a wide scale. (2) As the challenge cuts across several domains, there is a need for mainstreaming sustainable development across all areas and for cooperation and coordination between employment authorities and their counterparts in various fields, including finance, planning, environment, energy, transport, health and economic and social development. Institutional arrangements must be adapted to ensure the participation of all relevant stakeholders at the international, national, regional, sectoral and local levels in the building of an appropriate policy framework. Internal coherence should be sought among institutions at the national level, as well as within international institutions at the regional and global levels for the effective integration of the three dimensions of sustainable development. MESDDW-ROOM DOCUMENT III-En.docx 5

19 (3) Key policy areas to address environmental, economic and social sustainability simultaneously include: I. Macroeconomic and growth policies II. III. IV. Industrial and sectoral policies Enterprise policies Skills development V. Occupational safety and health VI. Social protection VII. Active labour market policies VIII. Rights IX. Social dialogue and tripartism The 2013 ILC conclusions paragraph 14(m) states that International labour standards offer a robust framework for addressing the challenges to the world of work associated with the greening of the economy and, more broadly, with the transition towards sustainable development and poverty eradication. Several international labour standards, including those covering freedom of association and the right to collective bargaining, prohibition of forced labour, child labour and non-discrimination, social dialogue, tripartite consultation, minimum wage, labour administration and inspection, employment policy, human resource development, occupational safety and health, as well as social security are important in this regard (see Appendix). 6 MESDDW-ROOM DOCUMENT III-En.docx

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